Best ETFs and Trading Platforms for UK Investors in 2024

The iShares Core FTSE 100 UCITS ETF (Dist.) is an ideal choice for those seeking exposure to the top hundred large-cap companies in the UK stock market. As a passive fund, it offers investors the opportunity to benefit from dividend distributions as cash payments, enabling them to make their portfolios more tax-efficient.

The FTSE 100 index gives investors access to some of the largest and most successful multinational companies based in the UK, such as AstraZeneca, BP, Unilever, HSBC, and Shell. These firms are generally found in stable industries like finance or resources and can provide investors with long-term growth potential.

The ISF ETF allows users to gain exposure to these firms while also keeping costs reasonably low; it only charges management fees of 0.07% per annum. Additionally, this fund offers a degree of global diversification due to its inclusion of some of the most recognisable names in business, including companies outside the UK.

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*Freetrade disclaimer: Capital at risk. Always do your own research.

iShares Index-Linked Gilts ETF is a UK exchange-traded fund (ETF) that provides investors with an opportunity to access the low-risk investment of index-linked gilts. Gilts are government bonds issued by the UK government and pay a fixed level of interest. Unlike traditional gilts, index-linked gilts offer investors a margin above inflation instead, which can be especially attractive in times of high inflation.

The iShares Index-Linked Gilt ETF provides exposure to this asset class with just 0.10% per year in fees and offers several advantages for investors. These include targeted exposure to sterling inflation-linked government bonds, direct investment in inflation-linked government bonds, and single-country government bond exposure with inflation protection. This makes it an attractive option for investors seeking a low-risk investment with some degree of protection from inflationary pressures.

In addition, investing in an index-linked gilt ETF through iShares also offers investors other benefits, such as diversification and liquidity, as well as additional tax advantages compared to individual investments in index-linked gilts.

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iShares UK Dividend UCITS ETF (Dist.) is an investment fund that aims to offer investors the opportunity to track and invest in the top 350 companies in the UK that pay out higher-than-average dividends.

It offers diversified exposure to these companies based on their performance in the FTSE 350 Index, with direct investments into 50 of them. By investing in this single country-focused ETF, investors can benefit from an increased income as it primarily focuses on dividend payments.

The fund comprises stocks and bonds from reputable British companies, primarily from the finance, consumer goods, and utility sectors. This ETF follows a passive management strategy that takes advantage of indexing, allowing it to benefit from any positive changes in market movements while minimising losses during periods of market volatility.

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*Freetrade disclaimer: Capital at risk. Always do your own research.

We’ve closed off one of the longest bull markets in history following the pandemic breakout and the war in Ukraine – which marked the comeback of everyone’s favourite shiny commodity: gold.

As fears of recession and potential destabilisation of the US dollar grow, a growing number of investors have been adding gold into their portfolios. Gold prices have been flirting with the £1,700 mark, and hit an all-time high of £1,635 in April. You too can benefit from its meteoric rise without the hassle of buying actual gold and storing it in a vault.

Managed by Blackrock, iShares Physical Gold ETC aims to track the gold price as per the London Bullion Market Association. An investment in the fund is underpinned by a metal entitlement – meaning that an amount of physical gold backs the investment. The fund is passively managed, which means that it comes with lower ongoing charges, and that it doesn’t aim to beat the price of gold, rather, it aims to match it.

During times of uncertainty and high inflation, this fund can provide the hedge your portfolio needs.

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*Freetrade disclaimer: Capital at risk. Always do your own research.

The Vanguard S&P 500 UCITS ETF (VUSA) is an excellent choice for those seeking exposure to the American stock market. Using a passive management or indexing investment strategy, VUSA aims to track the performance of the Standard & Poor’s 500 Index. It achieves this by investing in the 500 largest companies in the US, including Apple, Google, Coca-Cola, Disney, and Nike, and has an operating cost of 0.07%.

To ensure that it accurately mirrors this index, VUSA acquires all constituent securities proportionally, with sampling used where full replication is impossible. Furthermore, VUSA always remains fully invested except under extraordinary market conditions or similar circumstances.

This ETF provides access to some of America’s top firms but carries its own risks due to fluctuations in price caused by macroeconomic events and company-specific news. Nevertheless, with an 85% price increase in the past five years, VUSA has been in a strong uptrend since 2013, making it an ETF to keep an eye on.

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*Freetrade disclaimer: Capital at risk. Always do your own research.

This Vanguard S&P 500 UCITS (VUAG) ETF is an exchange-traded fund that tracks the performance of the Standard & Poor's 500(S&P 500) Index. The S&P 500 index consists of large-cap stocks from the U.S. market, and the VUAG ETF invests in all constituent securities of the index in the same proportion as the index. Unlike the VUSA ETF, income and dividends from VUAG are automatically reinvested into the fund, making it an excellent choice for investors looking to benefit from compounding returns.

The Vanguard S&P 500 UCITS ETF seeks to maximise returns for investors by using a sampling process when it is impossible to fully replicate the performance of the S&P 500 Index. It also works diligently to remain fully invested at all times, except in extraordinary market conditions or other similar events that may impact investments. This ETF is available in many countries and has been officially registered with regulatory authorities such as the UK Financial Conduct Authority (FCA).

Investors who use VUAG ETF have access to a diverse portfolio due to its selection of large-cap stocks from different sectors and industries throughout the US stock market.

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If you’re looking for a tech-focused ETF in the UK, one option is the iShares NASDAQ 100 UCITS ETF (CNDX). This ETF seeks to track the performance of an index composed of 100 of the largest non-financial companies listed on the NASDAQ Stock Market.

With CNDX, investors can target their exposure to large market capitalisation stocks from various global industry groups such as computer hardware and software, telecommunications, retail/wholesale trade, and biotechnology. Plus, with an ongoing management charge of 0.33%, CNDC provides investors with a suitable way to diversify their portfolios while still taking a tech investing approach.

Whether you want broad exposure without taking on too much risk or prefer a targeted approach that allows you to hone in on specific areas of technology investments, CNDX is worth considering for your portfolio.

With a 95% price increase in the last five years, the fund has experienced strong returns due to its impressive basket of top non-financial stocks from across the world - making it one of the best ETFs in the UK for technology investments. The iShares NASDAQ 100 UCITS ETF has been around since 2006 and is managed by BlackRock Investment Management (UK).

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*Freetrade disclaimer: Capital at risk. Always do your own research.

The iShares Core S&P 500 UCITS ETF offers investors the opportunity to gain exposure to some of the most well-known and established companies in the United States.

This ETF is designed to track the performance of the S&P 500 index, providing a broad and diversified portfolio with over 500 large US-based multinational corporations. All dividends generated are distributed as cash, giving investors access to an attractive source of income.

Over the past five years, this ETF has grown by 35%, making it one of the top performers in its class.

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*Freetrade disclaimer: Capital at risk. Always do your own research.

The Vanguard FTSE All-World UCITS ETF is a global stock market exchange-traded fund (ETF) that allows investors to invest in over 3,000 stocks from around the world. This ETF seeks to track the performance of the FTSE All-World Index, which includes stocks from both developed and emerging markets, including mid and large-cap securities. The portfolio is weighted according to the global market, with North American stocks making up 63%, followed by Europe at 15%, Asia Pacific at 10%, and Emerging Markets at 10%.

The ETF employs a passive management approach through the physical acquisition of index constituent securities and aims to remain fully invested except in market or political conditions that are deemed extraordinary. With an ongoing management charge of 0.22%, this fund offers a diversified portfolio of stocks, and any income generated is paid out directly without reinvesting.

Furthermore, since it follows an index tracking approach, no active management decisions need to be made as all investment decisions are based on established rules and criteria. Therefore, investors don’t need to worry about making individual stock selection decisions or monitoring their investments on an ongoing basis.

Since the rebound of the VUAG ETF in 2020, it has maintained a strong uptrend with a 57% price increase in the past five years.

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*Freetrade disclaimer: Capital at risk. Always do your own research.

The iShares Global Clean Energy ETF (INRG) is a passive fund that tracks the S&P Global Clean Energy Index. The index consists of global equities from companies in the clean energy sector, and dividend income is distributed to investors semi-annually.

This fund could be significantly impacted by the momentum within the clean energy industry and any news or legislative changes that may affect it. For example, climate bills in the US or Europe that can create more opportunities for green energy companies are often seen as good news for the ETF.

Investors can access the INRG fund for exposure to this rapidly growing industry and potentially benefit from increased returns due to environmental sustainability initiatives.

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*Freetrade disclaimer: Capital at risk. Always do your own research.

ETP stands for Exchange-Traded Product, which is a general term that includes various investment products traded on an exchange. ETFs are a type of ETP, alongside others like Exchange-Traded Notes (ETNs) and Exchange-Traded Commodities (ETCs).

Both ETFs and mutual funds are baskets of investments, but there are some key differences in the way they are bought and sold.

You can buy and sell ETFs on stock exchanges, whereas mutual funds are different. They can only be bought and sold at the end of the day, and instead of a market price, they have minimum investment requirements. It can range from £100 to £5,000, or more.

The primary difference between ETFs and index funds is in their tradability. ETFs are traded on an exchange like individual stocks, meaning their prices fluctuate throughout the day, whereas index funds are only bought and sold at the end of the trading day at the net asset value price.

ETN stands for Exchange-Traded Note. It is a type of unsecured debt security that tracks an underlying index of securities and trades on a major exchange. Unlike ETFs, ETNs don't own the assets they track. Instead, they are backed by the credit of the issuer.

Exchange-traded funds offer investors unique opportunities to profit from the financial markets but still come with certain drawbacks. Here are some pros and cons of ETFs;

Unfortunately, there is no single answer to this question, as a variety of factors can make a platform or broker safer than others. It is crucial for investors to do their due diligence when researching platforms and brokers, looking into the security measures in place, fees associated with trades, and customer service quality.

Additionally, some brokers may ensure funds are used in investment accounts, providing further peace of mind for traders. However, it is essential to note that no trading platforms are risk-free, and potential losses should always be considered when making ETF investments.

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